Nestle Loses KitKat Trademark Court Battle

Nestle (VTX: NESN.VX - news) has lost a long-running court battle to trademark the four-finger shape of its KitKat chocolate bar.

The company first tried to register the trademark in 2010, but this application was opposed by rival chocolate maker Cadbury.

The High Court in London ruled on Wednesday that the shape of a KitKat has not "acquired a distinctive character" enough to satisfy the requirements for a trademark.

Mr Justice Arnold said he considered the issues relating to the "distinctive character" of the "three-dimensional shape" at a hearing earlier this month and ruled against Nestle on Wednesday.

He began deliberating on the dispute in 2014, but paused the case to allow judges in Europe to consider legal issues.

Mr Justice Arnold said aspects of European trademark law were "unclear" and he wanted clarification from the EU's Court of Justice before making a decision.

Nestle has said it will appeal, and claimed the ruling opened the way for a rival to make a similar-shaped four-finger chocolate bar.

In a statement the company said: "Kit Kat is much loved and the iconic shape of the four-finger bar, which has been used in the UK for more than 80 years, is well known by consumers.

"We believe that the shape deserves to be protected as a trade mark in the UK and are disappointed that the court did not agree on this occasion.

"We are taking the necessary steps to appeal this judgement."

Cadbury owner Mondelez said: "We are pleased by this ruling by the UK High Court which is in line with our contention that the shape of the Kit Kat bar is not distinctive enough to be protected as a trade mark."